Kerala govt's intervention fails to boost rubber price

Natural rubber in the local market on Friday nosedived to Rs 117 a kg despite Kerala government's market intervention operations.

The state government had announced rubber procurement in March when the price dropped to Rs 150 for a kg. It started procuring the commodity at a higher price, which is Rs 5 more than the Rubber board's price.

The procurement operation miserably failed as nodal agencies like the Kerala State Co-operative Rubber Marketing Federation Ltd (Rubber Mark) and the Rubber Producers Societies (RPS) together procured below 500 tonne so far because of lack of funds.

As the government had not released funds, agencies have not been active and the price was falling on a daily basis. The state government has sought the Centre's financial support, to which, there was a positive response.

The Kerala government, which is reeling under a serious financial crisis, has not been able to release funds to the nodal agencies.

"We have no funds to procure rubber and are not in a position to buy unless the government support us. We cannot procure rubber in a market like this. We have to give cash to farmers immediately as farmers are in deep crisis due to incessant price fall. If the government provides funds, we will enter the market," said a senior officer of a state level co-operative body.

Farmers who spoke to Business Standard told the procurement did not make not even a minimum impact on the price. Natural rubber price fell roughly Rs 33 per kg after the announcement on procurement.

The government has so far earmarked Rs 10 crore for the procurement operation, which is negligible, compared with the actual amount required for collecting rubber.

"It is a mere eye-wash. The government is not sincere in the market intervention," said a grower.